I bought one lot of IDBI Bank February 150 call option at Rs 2.5. I am also holding TCS February long futures, entered at Rs 1,165. Let me know when to square-off my positions. – Mr Viswanathan

IDBI Bank (Rs 136.5): The outlook for the bank is negative. It finds an immediate support at Rs 131 and a resistance at Rs 147.

Only a close above Rs 162 would mean improvement for the stock. If it fails to sustain at Rs 131, IDBI Bank could touch Rs 120.

F&O pointers : IDBI Bank witnessed unwinding of long positions on Friday. Option trading indicates a negative bias, calls added more open interest position.

Strategy: The position has already lost a lot. Only a close above Rs 150 would give some momentum to your option premium. It is better to exit.

TCS (Rs 1,145.45): The IT major is ruling at a critical level. It finds an important support at Rs 1,125 — a close below that would weaken the stock sharply towards Rs 1,062 and Rs 987. TCS finds an immediate resistance at Rs 1,173 and next at Rs 1,202.

F&O pointers: The counter accumulated fresh short on Friday and closed in discount with respect to the spot close of Rs 1,154.35.

Heavy unwinding in puts and accumulation in call indicate a negative bias.

Strategy: If you are willing to take a risk, hold your position with a stop loss at Rs 1,125 (spot price on a closing day basis). Otherwise exit.

I entered short on Unitech futures at Rs 44.30. My position is marginally positive. Can I exit with the profit or hold it for downside? – Mr Raju

Unitech (Rs 43): The overall outlook for Unitech would remain negative as long as it stays below Rs 62. It finds an immediate support at Rs 42.65.

A fall below that could drag it to Rs 28, though Rs 36 would act as a minor support zone in-between. The stock finds an immediate resistance at Rs 47 and next at Rs 54.

F&O pointers: Unitech futures witnessed an accumulation of short positions on Friday and closed with marginal discount against the spot price close of Rs 43.1.

Option trading indicates a negative bias for the counter. Option indicates Rs 40 as a support.

Strategy: Hold your position with a stop loss at your entry level.

I am holding long position on Nifty futures at 5,360. Advice me stop-loss and long targets. – Mr S Gopalan

Nifty : The outlook remains negative for Nifty futures. Only a close above 5,840 would change the negative outlook for Nifty.

It finds an immediate support at 5,270 and then at 5,042. On the other hand, the immediate resistance appears at 5,428.

F&O pointers: The Nifty futures added fresh short on Friday. Option trading indicates a negative bias.

Further, the firmness in volatility index also points further downside for Nifty.

Strategy : Exit.

I bought Lanco Infratech long futures at Rs 49.5. Can I hold it or exit from my position? – Mr Ganesh

Lanco Infratech (Rs 48.25): The outlook remains negative for Lanco Infratech. Only a close above Rs 636.5 would reverse the current negative trend for the stock.

It finds an immediate support at Rs 45.25 and the next at Rs 41.25. The immediate resistance appears at Rs 55.45.

F&O pointers: The futures witnessed unwinding of long position on Friday. Options are not active.

Strategy: Exit on any technical bounce back.

NOTE: The analysis and opinion expressed in this column are based on F&O data available at this point of time and on technical analysis based on past price movements. There is risk of loss in trading.

(Feedback may be sent to f&o@thehindu.co.in)

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